Chapter 4 Case
Rayovac Corporation: The Rechargeable Battery Opportunity Case Discussion Topics
• Analyze industry and company characteristics;
• Assess opportunities and alternative strategies available to a smaller company competing with larger, better resourced, well-established competitors; • Determine the best strategic direction for the company, given this opportunity and the company’s goals and resources, including establishing strengths and brand awareness in a small market segment to help growth in larger categories; • Understand the power and importance of retailers in highly competitive consumer btands overall, the growing need to gain leverage through building brand portfolios through acquisitions, and leveraging strengths of one brand to facilitate sales of another; • Create a marketing strategy for the new opportunity.
• What is your image of Rayovac batteries?
• Assess the rechargeable market opportunity for Rayovac. Is this a viable growth opportunity for the company to consider? • Market Analysis
o Household battery market in Canada+$300 million, largely due to increases in electronic devices such as cameras and iPods; o Consumers want more power from improved batteries, also drawing activity among competitive battery makers; o Alkaline batteries = most prevalent (70% market) and expected to keep that position, but market not growing significantly compared with other battery technology (especially NiMH); o Rayovac struggled with lower brand recognition, perceived quality, price and performance vs. Duracell and Energizer; o Battery consumer segments included “light users” (less than $25 per year) and “heavy users” (spent up to $250 annually); o Mass merchandisers generated the largest volume of sales, with corresponding need for Rayovac to compete effectively for shelf...